Cryptocurrencies are often categorized based on their primary use case. Two common categories are utility tokens and meme coins:
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1. Utility Tokens
These tokens have a specific function within a blockchain ecosystem. They are used to access products or services, pay fees, or power decentralized applications (dApps).
Examples:
Ethereum (ETH): Used to pay gas fees on the Ethereum network.
Chainlink (LINK): Used for oracle services.
Uniswap (UNI): Governance token for the Uniswap DEX.
Filecoin (FIL): Used to pay for decentralized storage.
BNB (BNB): Used for transaction fees on Binance Chain and Binance Smart Chain.
Key Characteristics:
Has a defined use within a project.
Often required to interact with a protocol or platform.
Can include governance rights, staking, or access to features.
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2. Meme Coins
These are primarily driven by community hype, social media trends, and humor. They typically have little or no inherent utility and are more speculative.
Examples:
Dogecoin (DOGE): The original meme coin, started as a joke.
Shiba Inu (SHIB): Inspired by DOGE, heavily community-driven.
Pepe (PEPE): Based on the Pepe the Frog meme.
Floki (FLOKI): Inspired by Elon Musk’s Shiba Inu dog named Floki.
Key Characteristics:
Often launched with little or no utility.
Prone to extreme price volatility.
Rely heavily on community support and viral marketing.
May evolve to add utility later (e.g., SHIB is building Shibarium).
